The building
of more new homes may cause some of this slowing in home price inflation.
Still, rising buyer demand, along with record - low inventory, has prompted calls from many in the real estate industry for builders to
add more new homes.
«Last month's swift price gains and the remarkably short time a home was on the market are directly the result of the homebuilding industry's struggle to meet the dire need
for more new homes,» says Mr Yun.
Home price growth is likely to moderate from
more new home construction, with the median price increasing about 6 percent in 2014 to $ 209,000 and reaching nearly $ 219,000 next year as market conditions begin to balance.
According to a 1986 study by the Joint Center for Housing Studies, by considering the savings on monthly utility bills when determining how large a mortgage the household can afford, as many as two - hundred and fifty thousand
more new home buyers could qualify per year.
Prime Central London home prices have risen 6.9 % in the last year, the worst performance in four years, and it is predicted that
thousands more new homes are set to be built in the next decade Annual property prices have risen 6.9 % in Central London, the lowest growth in four years, as thousands more homes are predicted to be built in...
And as with many such technologies, as more and
more new home owners get experience of solar plus storage, one can expect their friends and relatives to get more familiar with the concept too.
What's needed to spur stronger growth in the housing market is a marked increase in inventory through stepped - up new construction, because
only more new homes will ease tight inventories and, in turn, help slow home price gains, helping affordability.
According to Yun, evidence is piling up that
without more new home construction the current housing recovery could stall.
Why it's a smart choice: As more and
more newer homes lack built - in shelves, many home owners aren't sure how to store their books and collections after they move in.
Economists were already predicting continued inventory shortages,
more new homes coming on - line and moderating price increases.
«Last month's swift price gains and the remarkably short time a home was on the market are directly the result of the homebuilding industry's struggle to meet the dire need
for more new homes,» Yun says.
Recently, there have been some encouraging signs that
more new home buyers are entering the market, with new - owner households outnumbering new - renter households and the share of first - time buyers slowly increasing.
More new homes are needed to keep up with buyer demand.
The vast majority of young people live in private rental accommodation — so proposals to impose a cap on rent increases and build 1 million
more new homes have obvious appeal.
«Although there are
more new homes for sale, a strong increase in demand favors suppliers, not new home buyers.
Two
more new homes are underway.
«
More new homes for sale would increase the pool of listings homeowners would have to choose from if they decided to sell their home,» he added.
More new homes is a good thing for Las Vegas, which like much of the nation has been under the thumb of an inventory crisis that is sending home prices back up to pre-recession levels.
Builders broke ground on
more new homes than expected last month, reaching a six - month high in housing starts and also seeing a rebound in permits for future construction, the Commerce Department reported Tuesday in its new - home report.